Relevant provisions of Income-tax Act to be complied with by non-residents planning to set up business in India; and residents dealing with non residents

​International Businesses Sections to be remembered

Relevant provisions of Income-tax Act to be complied with by non-residents planning to set up business in India; and residents dealing with non residents

RELEVANT PROVISIONS OF INCOME-TAX ACT TO BE COMPLIED WITH BY NON-RESIDENTS PLANNING TO SET UP BUSINESS IN INDIA; AND RESIDENTS DEALING WITH NON-RESIDENTS
S. No.
Section
Particulars
1.
2
Definitions
2.
4
Charge of income-tax.
3.
5
Scope of total income.
4.
6
Residence in India.
5.
7
Income deemed to be received in India
6.
9
Income deemed to accrue or arise in India.
7.
Certain activities not to constitute business connection in India
8.
Incomes not included in total income
9.
Profits and gains of business or profession
10.
Amounts not deductible in case of TDS default
11.
Salary payable outside India or to a non-resident not deductible in case of TDS default
12.
Special provision for computing profits and gains of shipping business in the case of non-residents
13.
Special provision for computing profits and gains in connection with the business of exploration, etc., of mineral oils.
14.
Special provision for computing profits and gains of the business of operation of aircraft in the case of non-residents.
15.
Special provision for computing profits and gains of foreign companies engaged in the business of civil construction, etc., in certain turnkey power projects.
16.
Deduction of head office expenditure in the case of non-residents
17.
Special provisions for computing income by way of royalties, etc., in the case of foreign companies.
18.
Special provision for computing income by way of royalties, etc., in case of non-residents.
19.
Capital gains
20.
Transactions not regarded as transfer
21.
Mode of computation
22.
Cost with reference to certain modes of acquisition
22A
Deduction for start-ups
23.
Agreement with foreign countries or specified territories
24.
Adoption by Central Government of agreement between specified associations for double taxation relief.
25.
Countries with which no agreement exists.
26.
Computation of income from international transaction having regard to arm's length price.
27.
Meaning of associated enterprise.
28.
Meaning of international transaction.
29.
Meaning of specified domestic transaction.
30.
Computation of arm's length price
31.
Reference to Transfer Pricing Officer.
32.
Power of Board to make safe harbour rules.
33.
Advance pricing agreement.
34.
Effect to advance pricing agreement.
34A.
Secondary adjustment
35.
Maintenance and keeping of information and document by persons entering into an international transaction [or specified domestic transaction]
36.
Report from an accountant to be furnished by persons entering into international transaction [or specified domestic transaction].
37.
Definitions of certain terms relevant to computation of arm's length price, etc.
38.
Avoidance of income-tax by transactions resulting in transfer of income to non-residents.
39.
Avoidance of tax by certain transactions in securities.
40.
Special measures in respect of transactions with persons located in notified jurisdictional area.
40A.
Limitation on interest deduction
41.
Applicability of General Anti-Avoidance Rule.
42.
Impermissible avoidance arrangement.
43.
Arrangement to lack commercial substance
44.
Consequences of impermissible avoidance arrangement.
45.
Treatment of connected person and accommodating party.
46.
Application of this Chapter.
47.
Framing of guidelines.
48.
Definitions.
49.
Tax on short term capital gain in certain cases
50.
Tax on long term capital gains
51.
Tax on dividends, royalty and technical service fees in the case of foreign companies.
52.
Tax on income from units purchased in foreign currency or capital gains arising from their transfer
53.
Tax on income from bonds or Global Depository Receipts purchased in foreign currency or capital gains arising from their transfer.
54.
Tax on income from Global Depository Receipts purchased in foreign currency or capital gains arising from their transfer
55.
Tax on income of Foreign Institutional Investors from securities or capital gains arising from their transfer
56.
Tax on non-resident sportsmen or sports associations.
57.
Tax on certain dividends received from foreign companies
58.
Definitions relating to chapter on 'Special provisions relating to certain incomes of non-resident'
59.
Special provision for computation of total income of non-residents.
60.
Tax on investment income and long-term capital gains
61.
Capital gains on transfer of foreign exchange assets not to be charged in certain cases.
62.
Return of income not to be filed in certain cases.
63.
Benefit under Chapter to be available in certain cases even after the assessee becomes resident.
64.
Chapter on 'Special provisions relating to certain incomes of non-resident' not to apply if the assessee so chooses.
65.
Special provision relating to Minimum Alternate Tax (MAT) Credit
66.
Special provisions relating to payment of Minimum Alternate Tax (MAT) by certain companies
67.
Special provisions relating to payment of Alternate Minimum Tax (AMT) by certain persons other than a company
68.
Tax credit for Alternate Minimum Tax (AMT)
69.
Application of other provisions of Act to a person liable to pay Alternate Minimum Tax (AMT)
70.
Application of provisions relating to Alternate Minimum Tax (AMT) to certain persons
71.
Interpretation of certain terms referred to in chapter relating to Alternate Minimum Tax (AMT)
72.
Conversion of an Indian branch of foreign company into subsidiary Indian company
72A
Special provisions relating to foreign company said to be resident in India
72B
Tax on income from securitisation trusts
73.
Special provisions relating to tax on income received from venture capital companies and venture capital funds
74.
Special provisions relating to Business Trust
75.
Special provisions relating to tax on income of investment funds and income received from such funds
76.
Return of income
77.
Permanent account number
78.
Return by whom to be signed
79.
Self-assessment
80.
Representative assessee
81.
Liability of representative assessee
82.
Right of representative assessee to recover taxes paid
83.
Who may be regarded as agent
84.
Direct assessment or recovery not barred
85.
Remedies against property in cases of representative assessee
86.
Shipping business of non-residents.
87.
Recovery of tax in respect of non-resident from his assets
88.
Assessment of persons leaving India.
89.
Payment of Salary
90.
Payment of taxable accumulated balance of provident fund to an employee
91.
Income by way of winnings from lotteries, crossword puzzles, card games and other games of any sort
92.
Income by way of winnings from horse races
93.
Payments to non-resident sportsmen or sports associations.
94.
Payment on account of repurchase of unit by Mutual Fund or Unit Trust of India
94A.
Payment of rent by certain individuals or Hindu undivided families.
94B.
Payment of monetary consideration under Joint Development Agreement
95.
Payment of interest on infrastructure debt fund
96.
Certain income distributed by a business trust to its unit holder
97.
Income in respect of units of investment fund
97A
Income in respect of investment in securitisation trust
98.
Payment of interest by an Indian Company or a business trust in respect of money borrowed in foreign currency under a loan agreement or by way of issue of long-term bonds (including long-term infrastructure bond)
99.
Payment of interest on rupee denominated bond of an Indian Company or Government securities to a Foreign Institutional Investor or a Qualified Foreign Investor
100.
Payment of any other sums to a non-resident or to a foreign company
101.
Income payable "net of tax"
102.
Income from units (including long-term capital gain on transfer of such units) to an offshore fund
103.
Income from foreign currency bonds or shares of Indian company.
104.
Income of Foreign Institutional Investors from securities.
105.
Certificate of deduction at lower rate
106.
Credit for tax deducted
107.
Duty of person deducting tax
108.
Consequences of failure to deduct or pay
109.
Meaning of person responsible for paying
110.
Bar against direct demand on assessee
111.
Requirement to furnish Permanent Account Number
112.
Liability for payment of advance tax
113.
Conditions of liability to pay advance tax
114.
Computation of advance tax
115.
Payment of advance tax by the assessee of his own accord or in pursuance of order of Assessing Officer
116.
Instalment of advance tax and due taxes
117.
When assessee deemed to be in default
118.
Credit for advance tax
119.
When tax payable and when assessee deemed in default
120.
Penalty payable when tax in default
121.
Certificate to tax recovery officer
122.
Other modes of recovery
123.
Recovery of tax in pursuance of agreements with foreign countries.
124.
Tax clearance certificate
125.
Interest for default in furnishing return of income
126.
Interest for default in payment of advance tax
127.
Interest for deferment of advance tax
128.
Provisions relating to advance rulings- Definitions.
129.
Authority for Advance Rulings.
130.
Vacancies, etc., not to invalidate proceedings.
131.
Application for advance ruling.
132.
Procedure on receipt of application.
133.
Appellate authority not to proceed in certain cases.
134.
Applicability of advance ruling.
135.
Advance ruling to be void in certain circumstances
136.
Powers of the Authority.
137.
Procedure of Authority
138.
Penalty for failure to furnish report under section 92E.
139.
Penalty for failure to deduct tax at source
140.
Penalty for failure to furnish statement or information or document by an eligible investment fund
141.
Penalty for failure to furnish information or document under section 92D
142.
Penalty for failure to furnish information or document under section 285A
142A
Penalty for failure to furnish report or for furnishing inaccurate report in respect of international group as per section 286
143.
Penalty for failure furnish information or furnish inaccurate information under Section 195
144.
Submission of statement by a non-resident having liaison office
145.
Furnishing or information or documents by an Indian concern, through or in which the Indian assets are held by the foreign company or the entity, in certain cases
146
Furnishing of report in respect of international group


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